Friday, January 30, 2009

Policy of "Credit Easing" Works, Cramdowns and Appraisals

What is happening today in mortgage lending:

Here are a few articles I found interesting in my morning reading. Please always feel free to post your comments.
How Bernanke's Policy of 'Credit Easing' Works


Cramdowns and Refinancings Won't Need Appraisals

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or http://www.dutips.blogspot.com/

Thursday, January 29, 2009

FHA has revied their loan calculation worksheets

What is happening today in mortgage lending:
FHA has revised their loan amount calculation worksheets. You can go to my blog and print off the Work Sheet 1 Rate and Term, Work Sheet 2 Cash out , Work Sheet 3 Streamline without an appraisal , Work sheet 4 Stream line with an appraisal as well as the Purchase work sheet

You can always find these work sheets in my FHA menu on my blog on the left hand side under forms.

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

Tuesday, January 27, 2009

Utah's Economic Forecast for 2009


What is happening today in mortgage lending:

We are now looking at the end of the first month of the year. We all have a lot of questions regarding what the future has in store. I thought you might be interested in looking at the Economic Forecast for 2009 I think there is some valuable information here.

Please if you have not sent in your Credit Authorization make sure you get it in today. If you do not have this signed by Friday you will no longer be able to do business with Met Life. You may email or fax to me.
Remember to check out my blog. I house all the information I send out in emails on this blog. I noticed that my FHA blog is getting a lot of hits a day. Check it out and see if it will help you close more loans. Notice our Conventional pricing!


Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

Monday, January 26, 2009

Brokers need to complete Credit Authorization to continue doing business with MET

What is happening today in mortgage lending:

ALL BROKERS NEED TO COMPLETE THE CREDIT AUTHORIZATION FORM IN ORDER TO CONTINUE DOING BUSINESS WITH US. PLEASE GET THIS BACK TO ME COMPLETED ASAP.

IF WE DO NOT HAVE THESE TURNED INTO CORP BY THE END OF THE MONTH THEY WILL BE CUTTING BROKERS OFF.

ALSO, ANY LOAN LOCKED AND NOT DELIVERED WITHIN 15 DAYS OF LOCK WILL BE CANCELED. IF YOU HAVE A LOAN THAT YOU NEED TO KEEP IN THE SYSTEM BEYOND THE 15 DAY WE NEED TO BE NOTIFIED. THIS IS IMPORTANT THAT WE STAY ON TOP OF THIS.

THANK YOU FOR YOUR HELP IN THESE MATTERS.

IF YOU HAVE ANY QUESTIONS PLEASE FEEL FREE TO CALL

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

Wednesday, January 21, 2009

U.S. Yields Flattened: Fed Seeks Lower Mortgage Rate

What is happening today in mortgage lending:
Headlines you maybe interested in
U.S. Yields Flattened; Fed Seeks Lower Mortgage Rates

Rate Probability: Sideways to Volatile



Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

Tuesday, January 20, 2009

A Message from HUD

What is happening today in mortgage lending:
Four Messages for FHA Lenders:



1. FHA Industry Call: Maximum Mortgage Calculation:



Wednesday, January 28th at 2 pm, FHA will provide a comprehensive review of the maximum mortgage calculation for all mortgage products, including purchase loans, all types of refinances, and 203(k). Materials will be provided the week of the call. The call-in number is 202-866-207-0413 and the ID number is 81608101.



2. 203(k) and Streamlined (k) Maximum Mortgage Calculation Clarification:



The new cash investment requirements for all FHA case numbers assigned on or after January 1, 2009 also applies to the calculation of the loan amount for Section 203(k) and Streamlined (k) loans. Until the new 203(k) Maximum Mortgage Worksheet, form HUD-92700 is posted, please use the following guidance to modify the existing worksheet. As stated in Mortgagee Letter 2008-23, the Loan-to-Value (LTV) for 203(k) loans may exceed 100% of the appraised value. Modifications have been made to the existing worksheet and will be posted upon completion of the clearance process.



“Form HUD-92700 203(k) and Streamlined (k) Maximum Mortgage Worksheet:



Mortgage Calculations for Purchase Transactions (Section C)



Line C1 stays the same

Line C2 stays the same

Line C3 stays the same

Line C4:

Mortgage Amount = Sum of C3 +(-) Required Adjustments (Note 4) ($__________)

LTV Factor (96.5%) (Owner-Occupant) or Less Allowable Down Payment/HUD Owned Property ($__________) (Note 5)

Line C5:

Statutory Investment Required (C3 x 3.5%)

Line C6:

Actual Cash Investment Required (C3 + A5 minus C4 ($__________) (This figure must be equal to or greater than C5; if less, an adjustment must be made to C4 to ensure a 3.5% investment
Mortgage Calculations for Refinance Transactions (Section D)

Line D1 stays the same

Line D2 stays the same

Line D3: D2 ($__________) x LTV Factor (97.75%) (Owner-Occupant)

Line D4: Maximum Mortgage Amount is the Lesser of D1 or D3 (Note 5)

Line D5 stays the same”

3. Clarification to Requirements of Mortgagee Letter 2008-40: Cash-Out Refinance Transactions:

On page 5, all of the requirements listed under the heading “Additional underwriting and eligibility criteria” are applicable to all cash-out refinance transactions where the LTV exceeds 85%.

4. Streamlined Refinance Transactions at 2008 Economic Stimulus Loan Limits:

FHA will permit loans originated under the 2008 loan limits to be refi-ed at mortgage amounts that exceed the current 2009 (and future) geographic loan limits. For streamlines with appraisals or full refinances, the mortgage amount may exceed the current geographic limit so long as:

the new loan amount (without MIP) does not exceed the prior case loan amount and
the new appraised value supports the loan amount and the LTV is not greater than 97.75%.

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

Friday, January 16, 2009

Things you may want to know before submitting a package

What is happening today in mortgage lending:
As of Jan 24th Du will be updated. The up date will now show the correct county limits. The update will also make it so a VA cash outloan with loan amounts over the $144,000 will not get an ineligible just because the loan amount is exceeded.

Non Traditional credit will now require that the credit bureau provide Names and address of the trade line being verified. As of Jan 1, 2009 credit reports are only good for 60 days up to final approval. If a loan was final approved with in the 60 days the loan must close and fund within 120 days of the credit report.

If the mortgage rate is lower on a transaction after the approval is issued and there is no other issues on the loan it does not have to go back through underwriting.

FHA loan with and without a DU or LP approval must have compensating factors if the DTI is over 43%

FHA transactions that require two appraisals one appraisal can be a 2055 exterior. We do allow a 5% variance between the two appraisals.

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

Thursday, January 15, 2009

Appraisal changes May 1 2009

What is happening today in mortgage lending:
We have been waiting for the appraisal changes here they are. Freddie Mac HVCC Bulletin and FAQ:

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com

Wednesday, January 14, 2009

Bond Report; Chase Exits wholesale; and more

What is happening today in mortgage lending:

Here are articles that I found interesting this morning during my morning reading and thought you might be interested

BOND REPORT: Treasurys Down After Bernanke Says Fed May Buy U.S. Debt


Chase Stops Funding Mortgages Through Brokers - Articles - On Wall Street

US FED: Rosengren Supports Expanded FHA Mortgage Lending - Forbes.com




Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.

Thursday, January 8, 2009

SAFE Mortgage Licensing Act

What is happening today in mortgage lending: Three New Federal Register Notices:. I thought you would be particularly interested in this one.
DEPARTMENT OF HOUSING & URBAN DEVELOPMENT
[Docket No. FR-5271-N-01] [Federal Register: January 5, 2009 (Volume 74, Number 2)][Notices] [Page 312-313]
TITLE: S.A.F.E. (SAFE) Mortgage Licensing Act; Notification of Availability of Model Legislation
AGENCY: Office of the Assistant Secretary for Housing--Federal Housing Commissioner, HUD.
ACTION: Notice.
SUMMARY: This notice announces that the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators have developed model legislation to assist states in meeting the minimum requirements of the SAFE Mortgage Licensing Act. HUD has reviewed this model legislation and finds that it meets the minimum requirements of the SAFE Mortgage Licensing Act. The model legislation is available on HUD's Web site at: http://www.hud.gov/offices/hsg/sfh/reguprog.cfm, along with HUD commentary on certain provisions of the statute, and the model legislation…
to read this notice in its entirety please visit: http://edocket.access.gpo.gov/2009/E8-31389.htm
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT




Shirley Nault has been a mortgage professional for over 20 years
Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com\

Monday, January 5, 2009

Don't forget changes in place as of Jan 1 2009

What is happening today in mortgage lending:

I was reviewing articles this morning and decided there are a few things that you should know that are not in any recent article.

1-All FHA loans that case number is ordered on or after Jan 1, 2009 the down payment requirement is now 3.5 for purchase transactions.

2-FHA Cash out refinances will now require two apprisals if ltv is over 85%

3-Rate and Term Refiances can now be 97.75% LTV plus the upfront MIP

4-Mtg Letter 08-40 now requires a borrower doing a cash out refinancing must have occupied the home for 12 months or more.

5-Mtg Leter 08-40 now requies a borrower doing a cash out refinancing must not have any lates in the last 12 months

4-Remember when doing a streamline refinance without an apprisal YOUR BASE LOAN AMOUNT CAN NOT EXCEED YOUR PREVIOUS LOAN AMOUNT (example if your old loan amount including MI was 101,500 your new base loan amount is 101,500 )






Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to: www.naultfhatips.blogspot.com or www.dutips.blogspot.com